Seed Funding Assistance, SEED Capital, Importance – Detailed
Seed Funding Assistance: Now a days there are many people coming with innovative business ideas that are having the viability of turning them into a successful business. But the only thing that stands as an obstacle to them is scarcity of funds. Seed funding is a boon to these people who are extremely desirous to establish their own startup. Here I’m going to discuss a few lines about seed capital assistance.
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Seed Funding Assistance
SEED capital :
Seed Capital is the initial amount of capital needed to start a business.Seed Capital Investment, as the name suggests, refers to the initial round of investment required to set up a business, one that would help get your idea off the ground. If establishing a company can be compared to growing a tree, the seed fund could be compared to watering the plant.
Three of the biggest challenges any aspiring entrepreneur faces are access to capital, guidance from people who have done it successfully before, and the viable environment in which they can better execute the idea. The Seed capital funding provides access to all three as the investors are already have the experience of dealing with such situations their guidance is a great support to new aspirants.
The risk involved with Seed fund is more when compared to investments that pertain to expansion of companies which are already well established in the market. Seed capital providers are unlike the other players in the Investment network like the Venture Capitalists and Equity Financers are quite willing to provide the Seed Fund for these Startup Companies. In return for these investments, they ask for an equity stake in the company. They also provide financial and legal assistance to the Startup Companies as well. The number of such seed fun Investors is in an increasing trend and looks like there are good days filled with optimism for Indian Entrepreneurs.
The amount of capital is relatively low when compared to other sources of funding like venture capital assistance etc., because the business is still in the conceptual stage. Such a venture is generally at a pre revenue stage and seed capital is needed for research and development, to cover initial operating costs until a product or service can start generating revenue, and to attract the attention of venture capitalists.
Following are some well-known seed funding agencies operating in India:
- Indian Angel Network
- The Hatch
- Technology Business Incubator, IIT Delhi